- KPMG says that stopping the theft and malpractices in the crypto industry is the key to its growth.
- Sal Ternullo said that no institutional investor will ever risk owning any crypto-asset.
KPMG says that stopping the theft and malpractices in the crypto industry is the key to its growth. In a statement, KPMG said that the cryptocurrency industry could grow a lot quicker, and the key to that is stopping the theft of $9.8 billion that have taken place till now.
Hackers since the year 2017 have managed to find enough loopholes and exploits in the crypto market that over a whopping 9.8 billion US dollars have been lost to theft. The thefts happened because of lax security and very poorly written code, said a report published by the accounting firm KPMG that was released on Monday.
Safeguarding the tokens more has become more important than ever as the adoption of cryptocurrencies such as Bitcoin and Ethereum amongst the institutional investors have led to competition for a place in the portfolios, said KPMG.
The Co-leader of KPMG’s crypto-asset services and also the co-author of the report, Sal Ternullo, said that no institutional investor will ever risk owning any crypto-asset. If the value of the cryptos can’t be kept safe just the way their cash, bonds, and stocks are.
This statement makes it very clear and easy to understand the amount of impact hacker activity can have on investment in the industry and the trust of the investors on the digital assets and wallets.
The first companies that are offering custodial services for crypto assets are Fidelity Investments, some units of exchanges that are run by Intercontinental Exchange Inc., Gemini trust, and Coinbase.
In cryptocurrency custodial services, the owner holds a key that is known as the private key, and the key is all that the owner has. This means that if the key is lost or stolen, the asset is lost forever because the key is a string of random characters that are kept in a digital wallet or on a piece of paper.